Free Application for Federal Student Aid, more popular as FAFSA is a form that forthcoming college students in the United States of America including undergraduate and graduate students need to completely fill up and submit to US Department of Education so they can be a candidate of eligibility for all types of financial aids. Some of the grants that students can apply for are State Grants, Tuition Workers, Work-Study Programs and Loans, Pell Grants and Institutional Grants. The Department of Education accepts FAFSA application at the beginning of each year so students can use it for the approaching school year. It would be best for students to pass their FAFSA form as early as possible so they can get considerations for the maximum financial aid that they can get.
There are questions regarding whether FAFSA form look into the debt history of the family. The only debt that FAFSA considers is those that lessen the price of a reportable asset. For example, a loan against a real estate reduces its reportable value. Other than that, FAFSA form does not look on debts. If you or your parents have credit card debt, FAFSA will not look into it. In addition, loans made by parents for tuitions and other student loans are not taken into account. FAFSA form does not also look if you or your parents make mortgages for cars and other things.
Student applicants may submit renewal form for their Federal Student Aid Eligibility and if there are changes in the information, it should be changed and updated every year. A FAFSA form consists of at least 130 questions about the income, assets and dependency of the student and its family. These sets of information will be used in a formula to determine the Expected Family Contribution or the EFC. Several factors such as income of the family, household size, number of students in the family and assets are used to know the EFC so parents and the government will know how much financial contribution the parents can make for the education of their child.